DIY Cash Budget Envelopes: Free Printable

Mark and I are taking a leap this year and venturing into something brand new on the financial front: we’re preparing to try out a cash budget envelope system. I know, your eyebrows just furrowed a little, didn’t they? Mine did, too, pretty much for an entire year. Here’s a little background on what changed that furrowed brown to an intrigued eyebrow raise that said, “Okay…let’s give it a go!”

We are both avid podcast listeners, and one of our favorites of 2014 was The Dave Ramsey Show. For those who may not know, Dave Ramsey is an author and financial advisor who offers advice to callers on how to achieve financial peace. One of my favorite moments on each show is the “debt-free scream” where families actually come to Dave’s studio in Nashville to share their story of getting out of debt (some of ’em are tear-jerkers, not gonna lie), and then they get to celebrate by counting themselves down to a Braveheart-esque debt-free scream. It’s about as inspirational as it gets. Actually, a fellow blogger and friend, Kelly from View Along the Way, enjoyed a debt-free scream with her husband Andy and their two kids last January. It was such an epic moment!

Anyway, The Dave Ramsey Show has really inspired us to get our financial rears in gear, and we’ve worked hard to accomplish several of his “baby steps” such as building up our emergency fund (which we needed last year when one of our cars kicked the bucket).

While we’ve made great financial progress, one area in which we’re seeking growth this new year is creating and sticking to a monthly budget. We’ve tried using both paper ledgers and Mint.com in the past; however, we’ve never been able to stick to a system for more than a month or two.

What Has Held Us Back

We were both resistant to the idea the Dave Ramsey envelope system at first, simply because it seemed like such a hassle (and what about our credit card cash rewards?!). I also wondered if it would mean eliminating a lot of the “fun” in our lives like date nights and spontaneous trips. Because with the cash budget envelope system, once the money runs out in an envelope, that’s it for the rest of the month. You can’t “dip” from another envelope.

Yet after hearing testimony after testimony on the podcast about the system actually working for so many people, we decided to stop pre-judging it and at least try it out. What did we have to lose?

The Cash Budget Envelope System

I mean, it makes sense: the idea that it “hurts” a lot more to pay for that iced caramel macchiato in cash rather than simply by scanning my glittering Starbucks Gold card. So, while we may not be earning “rewards” from using our credit cards, we’ll likely be spending less money…a reward of even greater value.

Now, we just began this process, but already, we’re seeing the monthly budget not so much as a fun-buster, but as a fun-creator. We’re the ones who get to decide where our money goes, after all, and it’s liberating to actually know how much money we have and set aside our monthly expenses according to our financial priorities rather than just flying by the seat of our pants. (And yes, we even created envelopes for each of us entitled “Lauren’s Fun Money” and “Mark’s Fun Money.” So, the fun isn’t over. Nor are my iced caramel macchiatos.)

And as an added incentive to even come in under budget each month, all leftover cash dollars will be put toward a specific savings goal we’re working toward or a specific purchase we plan for. We’ll also have a jar for all change (so the envelopes only house dollars), which we can save up for special treats like a massage!

First Things First: Setting a Budget

The first two steps of making the cash budget envelope system a reality for us involved creating Our Budget Binder where we wrote out our monthly budget and determined our different spending categories. Because this post was getting mega-long, I spell out that process in a post of its own, so be sure to check that out HERE.

(Especially because it involves an extra special giveaway just for Thinking Closet readers! Running now through Monday, January 19th.)

Creating Our Cash Envelopes

Then, came the time to create our cash envelopes. Now, I did a fair bit of research on the different types of envelopes folk have used when adopting this system in the past. I found a lot of templates that were appealing, but none that fit our exact needs.

“No problem! I’ll just DIY my own!” I said to myself. (Oh, how many blog tutorials have been born out of these self-same words.)

We agreed on using one set of paper envelopes to share rather than two sets. And we wanted them to fit inside our wallets for the convenience factor (unlike the too wide size 6 3/4 business envelope).

Also, the “pretty” factor goes a long way with me. A standard white envelope would not help increase my excitement about trying out the cash budget envelope system; however, creating my own pretty ones out of scrapbook paper WOULD!

So, I adapted that standard business envelope to a size especially for the purpose of storing money…

…and one that fit within a wallet. Its dimensions are 2.8″ x. 6.6″.

These are not mailing envelopes; these are especially for storing cash (I know the USPS will charge you more for sending mail in non-standard envelope sizes). Now as long as that’s crystal clear…

I have links to both a printable file and Silhouette cut file that you may download for free within the tutorial below!

Here’s how to use my template to create your own cash budget envelopes out of scrapbook or printer paper.

Tutorial

Step 1. Select your paper of choice.

Use whatever paper type best suits your purpose. I chose to work with a pad of 12″ x 12″ cardstock paper (approx. 65 lb) that I picked up at Hobby Lobby with a 40% off coupon around the holidays. I couldn’t find a link to it online but it’s by The Paper Studio and it’s called “Oh So Glam: Specialty Metallic & Foil.”

PRO: The designs are fancy schmancy and the paper more durable than regular weight paper.

CON: If you were to fold it within a wallet, it would get crinkly. That’s a risk we’re willing to take!

Step 2. Download the free envelope template.

As promised, I have two FREE downloads for you all today, so everyone gets to play: a free Silhouette cut file for those of you with a *Silhouette or digital craft-cutter and a free PDF printable for everyone else! (Note: these files are for personal use only and are not for commercial purposes.) Just click on the links below to download them from box.com.

PDF Printable Instructions: Simply load your paper so the ink prints on the non-decorative side (or interior) of the envelope paper. You’ll cut on the solid lines and fold on the dotted lines (see step 4).

Silhouette-ers: Because I designed this envelope with some snazzy perforated fold lines, you’ll need to use the CUT STYLE window to turn on and off your cut lines and adjust your blade when cutting the different parts of the design. Once you get in the routine, it’s a fairly speedy process. Here’s the play by play:

1. Load your paper on your mat. (Note: if using thinner paper, I recommend using an old mat that has lost a lot of its stickiness.)

2. Select the center rectangle of the envelope (which will be folded), enter the CUT STYLE window (the little scissors symbol in V2), and select PERFORATE. Make sure the other lines are a faded red, signifying NO CUT. You should see a dashed line.

3. Then, in your CUT SETTINGS, you want to start with these custom settings: speed 3, thickness 1, blade 1. Manually set your blade to 1. And if your blade is a bit dull like mine and it doesn’t even make a mark on the paper, then increase it one more level to a blade of 2 both in your cut settings and manually. You want it to just barely cut through. You should almost have trouble seeing the dashed cut lines at certain angles. These are just scoring lines to help provide a smoother fold rather than one that really eats up the paper.

It’s also important that you not unload the mat yet. Keep it loaded!

4. With the paper still loaded in the machine, you’re going to go back to your CUT STYLE window and select NO CUT for the middle rectangle.

5. Then, select CUT for the outer shape. The lines should turn from faded red to solid dark red.

6. Then, change your CUT SETTINGS to match your paper medium. So, for me, I tried the standard cardstock settings using a “test cut.” Again, my blade was dull, so I needed to increase the blade one level to get a clean cut.

And then you’ll repeat the process all over again for your next envelope! Unfortunately, only one envelope fits for each 12″ x 12″ scrapbook page, so if you’re buying individual sheets, definitely opt for a 8.5″ x 11″ size.

Step 4. Fold your envelope.

Follow your dotted score lines and fold up the bottom flap of the envelope as well as the side flaps…

Category Labels

I intentionally opted for darker colored envelope paper so that I could apply some contrasting white vinyl labels for each of our budget categories.

(I’ll share tomorrow why we chose the categories we did and why we left out other ones like gas, medical, and haircuts.)

I made these vinyl labels with my Silhouette machine and included the cut files in the same cut file shared above; they feature one of my favorite free fonts, Bebas. To see a step-by-step tutorial on creating and cutting vinyl labels, click HERE.

For those without a Silhouette machine, you could easily create your own labels using a sheet of printable labels and the same free Bebas font! You’d save a bunch of time on weeding vinyl, too…therapeutic though it is.

List Labels

Mark and I decided we’re not going to itemize every single purchase we make, but rather just write the location and total dollar amount on a simple list on the back of the envelope to help us track where our money is going…especially in these early months of trying out the new system. We expect we’ll need to adjust our monthly budget projections as we go along.

For the list labels, I just stuck a 2″ x 4″ Avery Multi-Use Label on the back of the envelopes. After assessing the data at our monthly budget meetings, we can remove it or replace it with a fresh label, and start over again for the next month.

Gift Cards Have Value, Too!

Not only did we stuff our cash budget envelopes with the allotted money for that month, but with gift cards that been forgotten in the nether regions of our wallets. Now, they’ll be in the forefronts of our mind!

Here’s a glimpse at what our “ENTERTAINMENT” envelope looks like right now.

Voila!

Here are the completed cash envelopes in action with our first month of cash ready to go. (February can’t come soon enough!)

The current plan is to store them by the front door and grab the envelope(s) we need before leaving the house and return them to their spot upon coming home.

I’m sure we’ll mess up and forget to bring certain envelopes with us on our errands (which if we stick to Dave Ramsey’s system, means we have to drive back home to get the correct envelope rather than pulling from another)…but I’m actually excited to try out the new system rather than dreading it. Especially now that I made these nifty envelopes just for the task! It really does make it feel all the more official.

Wrap Up

I’ll definitely report back in a few months to let everyone know how it’s going. To be honest, it’s hard to hold a lot of faith in ourselves after having failed at past budget attempts, but we want to be good stewards of the money God has given us…and we’re willing to work hard to get there, even if it takes a few more attempts. We’re not going to let our fear of failure hold us back from trying.

Note: If you’re interested in learning more about getting out of debt or trying the cash envelope system, check out Dave Ramsey’s book, Total Money Makeover.

Your Turn

Do you keep a monthly budget?

What system(s) work best for you and your family?

Anyone else use the cash budget envelope system?

Do you have tips or recommendations to send our way?

I’d love to hear from you in the comments section below!

Want to Check Out More Silhouette Projects?

If you’re looking to get more organized in 2015 then boy do I have some fantastic posts for you to dig into! My Silhouette Challenge friends are also sharing projects on their blogs today on the subject of organization, most of which highlight vinyl creations. So, be sure to click on the collage below to peruse a wealth of inspiration.

*Full Disclosure: Dave Ramsey did not sponsor this post (though that would be awesome). This post contains affiliate links, meaning that if you make a purchase after clicking through, The Thinking Closet may receive a small commission at no extra cost to you. Thanks for helping to support this site!

Lovely comments so far...

Oh Lauren, just when I think I can’t love you any more! We’ve done the envelopes before and it works brilliantly, We’ve mentioned needed to get back to that. The thought of making my own gorgeous gold envelopes to use is enough to take us from “mentioning” to “doing”.

Lauren! You’re killin’ me with that awesome paper + Bebas font! Black and Gold is one of my favorite color combinations, and you’ll see Bebas font all over my house! I love the Dave Ramsey/ the idea of the envelope system – going to have to let that one sink in!

Lauren,
I love your envelopes! We have been doing the ‘cash envelope’ method since we got married four years ago and will probably never go back. (I put quotes around cash envelope because I use one of those small plastic divider thingys that you’re supposed to use for coupons for our cash. Since we’re on a pretty stripped down budget with me at home with our munchkin while we pay down our student loans like crazy, we don’t have a lot of the cash budget categories that we used to….)

Anyway, I digress. The biggest thing that has helped me with a budget has been learning that a budget is a tool and is supposed to work for US. Meaning, I would feel crippled and frustrated since there was never enough $ in groceries until we realized we needed to change up the allocations. Sounds so simple, but that has been really helpful. And yes, using cash only DOES make you think twice when you go to grab a coffee and a treat and realize that, man, you could make three whole pans of brownies and 82 cups of coffee for that price. (maybe I’m exaggerating…) Anyway, let us know how this journey goes!

p.s. After I read your day of rest post last week, I took yesterday off from the online world and good heavens I got a lot done! I even read a book (that was not about blogging.) 🙂 I feel very happy about this.

These pretty little envelopes are easily one of the funnest parts of budgeting. Haha!! I love that you guys are giving it a try and I hope it does awesome things for you and your marriage like it did for us. Thanks so much for the shoutout, bestie! <3 <3

I love this Lauren! What a creative way to budget & I’m so excited for you! I totally agree with you that the fabulous envelopes are essential to making this work! As with writing personal notes, lists, charts or anything, it’s often all about the cool products you’re using, as to whether its fun or blah. You can do this!

I’ve heard this tip so many times and I’m so….wary of it. Rationally, it sounds great, but then at the same time, I LOATHE carrying cash AND I keep a super tiny wallet b/c I wear scrubs at work, so it’s easier if I just have a tiny wallet in my pocket, rather than wasting time going to my locker.

Idk though, I DO need to get a hold of my spending. I already know my husband won’t go for it though! Lol!

You know, this is something we’ve been trying to do for a while. However, we’ve been trying to do it electronically (something like Mint.com). The problem we have with cash is that it’s hard to get since our bank is not based where we live. I know, we should probably change banks, but we’re creatures of habit. I look forward to seeing how it works for you, and maybe trying again (except with actual cash!)

So I feel like I’m destined to make my own envelopes just like you. Reason 1: I got a Silhouette for Christmas last week and need a legit project to take a stab at. Reason 2: I just bought that very exact pack of gold paper from Hobby Lobby last week specifically for some sort of awesome Silhouette project. Thanks for the print file and best of luck staying on track with your new budgeting system.

Lauren ~ What a great way to kick off the year with goals, a budget and a plan!! The hardest component to add to the mix is discipline and the cash envelopes will be a big help for sure. We’re trying to teach our girls about saving vs. spending and it’s a hard concept for them to grasp; however, I think if they see the envelope is empty or only has $x left, that might make it more tangible. As always, great job my friend!

Genius! I have been doing the cash envelope system for the past two months or so, and I often get frustrated when I have to shove one of those business size envelopes into my wallet. This is exactly what I have been needing! Thanks for sharing such a useful tool!

I hope that the cash system works for you too. It’s a learning process, for sure. A friend of mine and her husband told me that I would budget to severely in the beginning (they were right) and that after I found the “sweet spot” (I think I have), it would just work. I added budget categories that I didn’t even consider at first, upped my entertainment budget a little, reduced my food budget, etc. But now, it flows. I still look forward to pay day but now, it’s less desperation of needing the money because I have none, and more excitement about how fast my student loans are disappearing!

Oh hooray! This lengthy tutorial was worth putting together even just for ONE person being able to benefit from the template…so I’m delighted to hear you think you might be able to use it!

And that’s helpful to know about the potential struggles for first-time cash budgeters. I’m already anticipating that we might need to add a little more to our grocery and entertainment budgets. Eek!

Also, I loved hearing about your perspective shift when it comes to pay day. We’re looking forward to that! Bottom line: thanks for sharing your story, Amy; it’s super encouraging as we shove off on this new adventure!

Love to read about more people following Dave Ramsey’s financial plan! My husband and I took Financial Peace University a few years ago when we were engaged and it was the #1 reason we entered into marriage with the same financial goals and plan. Neither of us had any anxiety about joining our bank accounts! We still use the cash envelope system today and are on track to paying off our student loans before we buy a house. Everyone thinks we’re nuts, but we don’t care. Can’t wait to do our debt-free scream! 🙂

Your story is such an inspiration to hear, and actually it is confirming for me that our idea to gift Dave Ramsey’s Total Money Makeover and Financial Peace University to my sister and her soon-to-be-husband as a wedding gift is the right thing to do. Actually, my husband suggested that we gift it to them a.s.a.p. since now is probably the time they can use it most!

Also, I’ll definitely be tuning in when the time comes for your debt-free scream. Keep on keepin’ on, Anchored Souls!

These are fantastic. I have used the envelope system many times in my life and it’s been a while since I have used them. This has motivated me to look at my budget again and get saving!! Thanks Lauren, love your website.

Darling DannyO and I have been married nearly 34 years and have used the cash system for most of those years. We helped two kids pay for college. We have had some really lean years. The one thing we have NEVER done is used credit cards for every day expenses. We spent what we earned. We are debt free, including our mortgage and I am back to using the cash system because we are saving to remodel our kitchen. It does work!!

I would encourage young people to be frugal and faithful. It pays off with peace of mind later on!

P.S. I subscribed to your blog because my darling gave me a Silhouette for Christmas. I am having lots of fun learning how to use it 🙂

I actually read your comment aloud to my husband in the car yesterday, it warmed my heart so. It really is such an encouragement to encounter others who are a little further ahead on the journey toward financial peace. We will take your advice to heart!

Also, that DannyO sounds like a real keeper – – especially in the gift-giving department. How wonderful that you have a Silhouette machine! If you haven’t done so already, feel free to join the Silhouette Facebook group I coordinate. It’s a great place to come for inspiration and troubleshooting as you craft up a storm. Everyone is super encouraging…you’d fit right in! Here’s where to sign up if you’re interested: http://www.thinkingcloset.com/the-silhouette-challenge-facebook-group-new-members-welcome/

Thank you for your kind comment :-). What I didn’t say (and should have) is that we have lived on basically one income for 24 of those years as I have MS. While I’ve been able to hold part-time jobs as my body permits, we have accomplished this all on my husband’s salary as an electronic tech. We were never rolling in money, but always spent less than we earned. We have a beautiful house filled with things that make us happy — not the latest and greatest, but we take good care of what we have been blessed with.

I love these Lauren! The hubby and I are working on our budgeting strategy. I just consider it one of the many joys of newlywedhood. He thinks Dave Ramsey is a little too hard core, but I’m working on him. Baby steps, right? 🙂

It’s funny, I had the same reaction as your husband when I first was introduced to Dave Ramsey…it has taken me over a year to get to the point where I’m ready to try out the cash budget system. But you’re right – – we got here through baby steps. And I’m learning that every couple’s journey is different…and that’s okay!

Hey Girl! Good for you!
We’ve used the cash/envelope system for our daily incidental expenses for nearly 30 years now. We had to – I’m a spendthrift, impulsive shopper. Hubby is a saver. You can imagine the clash! This system was the only way to keep me accountable and for him to ease up a little.
For a variation on the theme, we have savings accounts set up for the house (appliances, larger purchases, taxes, etc) and vehicle (tires, repair, maintenance) and have a set amount automatically taken from each paycheck and deposited there. We know it’s there when we need it, but it also keeps us from making hasty decisions and purchases.
This may not make sense to some, but setting the boundaries and having your system actually frees you up and let’s you enjoy your money/blessings all the more!
And, yes, I totally agree – a pretty system is a sure-fire way to make it more successful!

I’ve been using the envelope method since April 2015. It’s amazing how you can tame the money when you write a zero based budget. I usually treat myself once a month to Starbucks. I use my gift card (teachers always have those) to sign up for bonus items. Then when I am gifted a card I just move the balance to the one I use for bonus points. Love your blog. Just made the cutest envelopes from your templet. Thank you.

I think a monthly Starbucks treat is a wonderful idea…I’m sure it’s EXTRA yummy considering it’s one of 12 a year! (And I do the same with gift cards – – hooray for bonus points that earn us free drinks!)

And I’m so delighted to hear you were able to make some envelopes of your own using my template. That brings me heaps of joy! If you’d like to send me an email with some of the photos of your project, I’d love to feature you in my next Reader Showcase!

Those envelopes are just the necessary motivation for me to start budgeting! Thsnks for this great inspiration and tutorial.I love the idea to make my own envelopes???? You dont happen to have design for us european readers? Im afraid our Euro bills are bigger than Us dollars and dont fit into those envelopes…
All the best
Olivia (from Austria/europe)

Olivia, so glad this post inspired you with budgeting! Unfortunately I don’t…but I wonder if you could adapt my stencil and create your own template of sorts to work from? Sorry, I wish I had the time in my life to whip one up for you, but these days, with a newborn, getting a shower is a great feat! Lol. Take care and all the best!

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I’m a New York gal putting down new roots in Orlando, Florida with my hubby and our sailboat. My heart skips a beat for all things creative, be it crafting, upcycling, sewing, journaling…especially blogging. If I can make you smile or ignite in you a spark of inspiration, then my job is done here. Won’t you grab a cup of chai, a comfy blanket, and stay a while? {read more...}

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